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Gurgaon Realty companies leverage new TDR policy
ECONOMY & POLICY

Gurgaon Realty companies leverage new TDR policy

Developers in Gurgaon are capitalizing on the policy that allows the purchase of Transfer of Development Rights (TDR) certificates to enhance the existing commercial or residential properties in the city.

Companies such as AIPL, Landmark Group, and Godrej Properties are utilizing this policy to increase the saleable area of their projects.

According to the Haryana government’s policy, landowners whose land is acquired for development projects can opt for TDR certificates from the government instead of monetary compensation. These certificates can then be sold to developers at market rates.

Anshuman Magazine, chairman and CEO (India, South-East Asia, Middle East & Africa) of CBRE, stated, “The Transfer of Development Rights (TDR) policy will certainly offer benefits to both developers and landowners in Gurgaon. While TDR provides landowners the flexibility to transfer development rights to areas with greater potential, developers can leverage TDR to maximize the potential of their properties or projects.”

Recently, Godrej Properties purchased TDR certificates from an individual for approximately Rs 50 crore for their project in Sector 43, a practice commonly seen in Mumbai but relatively new in the NCR region. This acquisition will enable the company to construct an additional 300,000 sq ft of space, with an estimated revenue potential of Rs 900 crore.

“This policy not only ensures efficient land use but also allows landowners the flexibility to trade TDR certificates at market rates. It promotes a balanced approach to urban development, creating a robust foundation for sustainable growth. As Gurgaon evolves into a major urban hub, the TDR mechanism is becoming a vital tool for driving scalable and sustainable development,” Magazine added.

Realty developer AIPL plans to expand its rental portfolio to nearly 5 million sq ft, with several retail and office complexes under construction, primarily leveraging TDR certificates. The company is effectively doubling the capacity of some of its existing buildings through TDR purchases.

An industry official noted, “Some local brokers have even begun purchasing TDR from farmers and later selling it to builders for a profit. This practice enhances the valuation of the building by 30-40%.”

Meanwhile, the Gurugram-based Landmark Group is planning to construct the tallest office tower in Gurgaon using TDR purchases. The company's upcoming projects are strategically located along Dwarka Expressway, New Gurgaon, and the Golf Course Road extension.

Developers in Gurgaon are capitalizing on the policy that allows the purchase of Transfer of Development Rights (TDR) certificates to enhance the existing commercial or residential properties in the city. Companies such as AIPL, Landmark Group, and Godrej Properties are utilizing this policy to increase the saleable area of their projects. According to the Haryana government’s policy, landowners whose land is acquired for development projects can opt for TDR certificates from the government instead of monetary compensation. These certificates can then be sold to developers at market rates. Anshuman Magazine, chairman and CEO (India, South-East Asia, Middle East & Africa) of CBRE, stated, “The Transfer of Development Rights (TDR) policy will certainly offer benefits to both developers and landowners in Gurgaon. While TDR provides landowners the flexibility to transfer development rights to areas with greater potential, developers can leverage TDR to maximize the potential of their properties or projects.” Recently, Godrej Properties purchased TDR certificates from an individual for approximately Rs 50 crore for their project in Sector 43, a practice commonly seen in Mumbai but relatively new in the NCR region. This acquisition will enable the company to construct an additional 300,000 sq ft of space, with an estimated revenue potential of Rs 900 crore. “This policy not only ensures efficient land use but also allows landowners the flexibility to trade TDR certificates at market rates. It promotes a balanced approach to urban development, creating a robust foundation for sustainable growth. As Gurgaon evolves into a major urban hub, the TDR mechanism is becoming a vital tool for driving scalable and sustainable development,” Magazine added. Realty developer AIPL plans to expand its rental portfolio to nearly 5 million sq ft, with several retail and office complexes under construction, primarily leveraging TDR certificates. The company is effectively doubling the capacity of some of its existing buildings through TDR purchases. An industry official noted, “Some local brokers have even begun purchasing TDR from farmers and later selling it to builders for a profit. This practice enhances the valuation of the building by 30-40%.” Meanwhile, the Gurugram-based Landmark Group is planning to construct the tallest office tower in Gurgaon using TDR purchases. The company's upcoming projects are strategically located along Dwarka Expressway, New Gurgaon, and the Golf Course Road extension.

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